Amazon AWS Cloud Capacity Sells Out as AI Demand Surges
Staff Reporter
26 October 2026, 11:19
Amazon is facing growing pressure to expand its cloud computing infrastructure as demand for artificial intelligence continues to surge. CEO Andy Jassy says much of Amazon Web Services’ (AWS) capacity for 2027 has already been sold in advance, with a significant amount of capacity also allocated for 2028.
According to Reuters, Jassy discussed the situation during a video podcast with venture capital firm Andreessen Horowitz. He said AWS had also sold out its cloud capacity for 2026, highlighting the challenge of keeping pace with demand from AI research labs and businesses.
Amazon plans approximately $220 billion in capital expenditures in 2026, reflecting its push to expand infrastructure and meet growing demand. Jassy noted that AWS keeps some capacity available in services such as Bedrock and EC2 to address immediate customer needs and support AI model workloads.
In this report:
- Why AWS is struggling to keep up with AI infrastructure demand
- What advance bookings mean for cloud capacity in 2027 and 2028
- How Amazon Bedrock and EC2 support AI workloads
- Why Amazon’s planned $220 billion capital expenditure matters
- What investors may watch in Amazon’s upcoming earnings report
